China EV Sales Slip in Early June: NIO, Xpeng, Tesla Report Weekly Declines

The Chinese electric vehicle market started June 2025 with a noticeable slowdown, as insurance registration data for the week of June 2–8 showed steep week-over-week declines across most major EV brands.

While the first week of a month typically reflects softer numbers due to logistical cycles and delayed consumer activity, the drop was particularly sharp this time—especially for Xpeng, Tesla, and Li Auto.

Weekly EV Registration Highlights (June 2–8)

• Tesla: 8,640 registrations (▼33% WoW)
• Li Auto: 8,270 (▼31.1%)
• BYD: 54,850 (▼8.3%)
• Xpeng: 4,190 (▼42.6%)
• NIO (main brand): 2,630 (▼12.3%)
• Onvo (NIO sub-brand): 1,200 (▼14.3%)
• Firefly (NIO new brand): ~510 (▼49%)

Only Leapmotor reported an increase, with registrations up 4.8% week over week.

NIO Breakdown: Signs of Early-June Fatigue

NIO’s main brand recorded 2,630 units, down 12% from the previous week. While not dramatic, this marks a cooling after a strong May finish. More notably:

• Onvo, NIO’s sub-brand targeting budget-conscious families, registered 1,200 units, marking the fourth straight weekly decline.
• The newly launched Firefly posted just 510 units, almost halving from last week. Enthusiasm around its debut is facing early headwinds.

The drop-off may reflect a temporary lull or a deeper signal of demand stabilization post-launch.

Xpeng’s Sharp Decline Follows a Record May

Xpeng posted 4,190 registrations for the week, down a steep 42.6% week over week. This comes after a blockbuster May, where the company reported 33,525 units, a 230% YoY surge.

The June slowdown might be partly seasonal, but it also underscores how heavily Xpeng relied on end-of-month push strategies—especially for its new Mona M03 and G6 models.

Market-Wide Context

This weekly data comes from insurance registrations, a reliable real-time proxy for deliveries in China. It's normal for early-week numbers in a new month to drop, but the extent of the declines suggests the market is entering June more cautiously.

Major reasons include:

• Slower consumer traffic post-holiday promotions
• Inventory cycles stabilizing after a strong May
• Potential buyer wait-and-see attitude amid rising export tariffs and macro uncertainty

Investor Takeaways

• NIO’s Onvo struggles to maintain momentum, potentially putting pressure on the company’s Q2 targets.
• Xpeng’s post-surge normalization highlights how volatile week-to-week numbers can be, especially around new model cycles.
• Tesla’s decline may reflect Model Y saturation in China, with competition intensifying from BYD and others.

Still, it’s too early to draw firm conclusions from one week of data. The coming weeks in June will be crucial in determining whether this is a momentary pause or the start of a broader cool-off in China’s EV market.